Policymakers raise base rate 30 bp to 2.4%

MNB

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The Monetary Council of the National Bank of Hungary (MNB) decided to raise the central bank base rate by 30 bp to 2.4% at a monthly policy meeting on Tuesday, according to a report by state news wire MTI.

The scale of the rise matched the one a month earlier and came after November inflation spiked at 7.4%.

The council also decided on Tuesday to raise the O/N deposit rate by 80 bp to 2.4% and the O/N and one-week collateralized loan rates by 30 bp to 4.4%.

The O/N deposit rate and the collateralized loan rate mark the bottom and the top, respectively, of the central bank's "interest rate corridor". The base rate is paid on mandatory reserves and preferential deposits.

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